StockNews.com Lowers Westlake (NYSE:WLK) to Sell

StockNews.com downgraded shares of Westlake (NYSE:WLK) from a hold rating to a sell rating in a research report report published on Thursday.

Several other research analysts also recently weighed in on the company. Royal Bank of Canada upgraded Westlake from a sector perform rating to an outperform rating and upped their price target for the stock from $157.00 to $174.00 in a research note on Friday, August 23rd. JPMorgan Chase & Co. raised their target price on shares of Westlake from $123.00 to $135.00 and gave the company an underweight rating in a research note on Thursday, August 15th. UBS Group reduced their price target on shares of Westlake from $172.00 to $160.00 and set a neutral rating on the stock in a report on Tuesday, July 9th. BMO Capital Markets raised their price objective on Westlake from $167.00 to $171.00 and gave the company a market perform rating in a research report on Tuesday, August 13th. Finally, Mizuho began coverage on Westlake in a research report on Thursday, August 8th. They issued an outperform rating and a $170.00 target price on the stock. Two research analysts have rated the stock with a sell rating, seven have given a hold rating and six have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of Hold and a consensus target price of $166.00.

Westlake Stock Performance

Shares of NYSE WLK opened at $144.28 on Thursday. The stock has a market cap of $18.55 billion, a PE ratio of 72.50, a price-to-earnings-growth ratio of 1.83 and a beta of 1.18. Westlake has a 1 year low of $112.77 and a 1 year high of $162.64. The firm has a fifty day moving average price of $143.50 and a 200-day moving average price of $148.49. The company has a debt-to-equity ratio of 0.41, a current ratio of 2.61 and a quick ratio of 1.94.

Westlake (NYSE:WLK) last posted its quarterly earnings results on Tuesday, August 6th. The specialty chemicals company reported $2.40 EPS for the quarter, beating analysts’ consensus estimates of $1.99 by $0.41. Westlake had a return on equity of 7.84% and a net margin of 2.27%. The business had revenue of $3.21 billion for the quarter, compared to analysts’ expectations of $3.22 billion. During the same period last year, the firm earned $2.31 earnings per share. The business’s quarterly revenue was down 1.4% on a year-over-year basis. Equities analysts anticipate that Westlake will post 7.13 earnings per share for the current fiscal year.

Westlake Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Tuesday, August 20th were given a dividend of $0.525 per share. This is a boost from Westlake’s previous quarterly dividend of $0.50. The ex-dividend date was Tuesday, August 20th. This represents a $2.10 dividend on an annualized basis and a yield of 1.46%. Westlake’s payout ratio is 105.53%.

Institutional Trading of Westlake

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WLK. Wealthcare Advisory Partners LLC purchased a new stake in shares of Westlake in the first quarter worth approximately $1,273,000. Susquehanna Fundamental Investments LLC bought a new stake in shares of Westlake during the first quarter worth $3,254,000. Comerica Bank boosted its stake in shares of Westlake by 17.9% during the first quarter. Comerica Bank now owns 24,490 shares of the specialty chemicals company’s stock valued at $3,742,000 after purchasing an additional 3,710 shares during the period. CIBC Asset Management Inc bought a new position in shares of Westlake in the second quarter worth about $544,000. Finally, Avantax Advisory Services Inc. purchased a new position in Westlake in the 1st quarter worth about $207,000. 28.40% of the stock is owned by hedge funds and other institutional investors.

About Westlake

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products.